"There is a rumor doing the rounds on the Web indicating that Blockbuster may be making its service available on the PS3 in the same way Microsoft partnered up with Netflix on the Xbox 360. If Sony does indeed partner up with Blockbuster, the service may give Netflix on the Xbox 360 a run for its money.
Alas, I have my doubts that Sony will end up partnering with Blockbuster on the PS3. Sony has invested quite a bit into the video section of the PSN store and parenting up with Blockbuster will only provide fierce competition to itself. Sony has been aggressively adding movies to the PSN video store by signing on studios one by one as well as offering its internal library.
However, partnering up with Blockbuster would be a brilliant marketing move on Sony's part, but considering how misguided I feel Sony's marketing team is, I have doubts that they have the insight to see the benefits. "